Villain Ltd wanted to renovate a part of its business space.
It recorded its supportive vouchers on a person who purchased all the required Assets and entered into Contracts on behalf of the company.
All the bills were made to be issued on this person without VAT.
AS per the Income Tax Law, a company is required to deduct TDS @ 2% (Plus surcharge and cess, of course) on remittances to contracts exceeding 50000 Rs.
Even if the company paid the 2% TDS on behalf of the Pseudo contractor, ( When he is not the genuine one, why would he have to pay tax...hence the company will pay for him..), the net gain for the company is around 2% assuming VAT @ 4%. If VATs @ 12.5%, heeee haaa hoooo.
It recorded its supportive vouchers on a person who purchased all the required Assets and entered into Contracts on behalf of the company.
All the bills were made to be issued on this person without VAT.
AS per the Income Tax Law, a company is required to deduct TDS @ 2% (Plus surcharge and cess, of course) on remittances to contracts exceeding 50000 Rs.
Even if the company paid the 2% TDS on behalf of the Pseudo contractor, ( When he is not the genuine one, why would he have to pay tax...hence the company will pay for him..), the net gain for the company is around 2% assuming VAT @ 4%. If VATs @ 12.5%, heeee haaa hoooo.
Too much brains, eh?
